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Who’s Afraid Of Decent Rates?

by Paul Strikwerda in Articles, Freelancing, International, Internet, Money Matters, Pay-to-Play 34 Comments

AfraidNewsflash!

The great rate debate is still going strong.

I’ve been writing about the erosion of voice-over rates for years, and every day, clients and colleagues are arguing privately and publicly about the value of our voices.

One thing is certain: that value keeps going down. Talk is getting cheaper and cheaper.

What’s going on?

Let’s begin with our clients. It’s so easy to blame clients for this downward trend, because they’re the ones paying us. However, I think it’s time to cut them some slack. So many of them are small players in a big, international market. Because that market is unregulated, and there are no universal prices, they have a hard time figuring out how much they can expect to pay for our services. That’s not really their fault.

A majority of voice-overs do not list their rates, hoping clients will contact them and ask for a quote. Those quotes may differ greatly because we need to take so many variables into account, and frankly, many of us don’t always know what to charge. Go to a VO Facebook group on any given day, and you’ll find someone asking for advice on price.

TURNING A PROFIT

Because I run my own business, I completely understand that my clients want to keep their costs low, and their revenue up. If you can get great service at a great price, why pay a penny more? I also understand that there’s a link between what you pay and what you get, no matter what industry you’re in. It’s foolish to expect top quality at a bargain-basement price, unless you’re benefitting from a liquidation sale.

These days, everyone’s online, and that complicates matters. It may seem that we’re all operating on a level playing field (the world wide web), which is not the case. It is anything but level, but try explaining that to an imaginary photographer in Latvia, who needs a few English voices for a website he’s launching. He’s offering $20 for 5 minutes of VO, which he believes is perfectly reasonable because he’s hired local talent at that price. He wants to know:

Why should I pay $250 for a 5-minute voice-over, if Olga in Riga is willing to do it for $20?

I told him: “Your job posting tells me that you’re looking for voice-overs with an authentic British accent. If Olga can pull that off, why not hire her? The reason you’re posting your job overseas is that ’20-dollar Olga’ has no idea what she’s doing. Her accent is clearly from Latvia, and not from London. And because it’s cold in the Baltics, she’s probably using a Snowball microphone, guaranteed to give that crap amateur sound the Fiverr crowd is so proud of. You pay for professionalism, or lack thereof.”

The photographer responds:

I understand that it might be hard for me to find a native British voice-over in my neck of the woods, but that still doesn’t explain the huge difference in rates. $250 for five minutes? I think people are just greedy.

I said: “Location makes a big difference. Let me give you an example. Why does a Big Mac cost $7.80 in Norway, and only $1.62 in India? Why doesn’t McDonalds charge the same price for the same product, regardless of the location? Because the price of a Big Mac is a reflection of its local production and delivery cost, the cost of advertising, and what the local market will bear.

The cost of living is much higher in Norway, and consequently, people make more. According to the CIA, the 2016 per capita income in Norway was $69,300 and in India it was $6,700. If I were a Norwegian voice-over artist and I would charge Indian prices, I wouldn’t be able to make a living. That has nothing to do with greed.

As a freelancer, you have to price for profit wherever you’re located, because that’s where you’re buying your Big Mac. It’s where you pay your bills, and your taxes. That’s why a UK talent charges more than someone in Latvia, or in India.

ONGOING ADDED VALUE

And let’s remember that a voice-over is not some hamburger you order at the drive-through. Every Big Mac should pretty much taste the same, no matter where you order it. It’s generic. Once it has been consumed, it has served its purpose.

Every voice is unique, and every voice-over artist brings special talents and experience to the table. Once recorded, that commercial, trailer, or eLearning course can be played again and again, adding value every time someone’s listening. That’s worth something. 

Last but not least, just because you’re paying $250, doesn’t mean the voice-over always gets $250. Some online casting companies like Canada-based voices dot com, pocket a considerable amount without telling you or the talent. If you want to talk about greed, talk about that!”

THE TROUBLE WITH COLLEAGUES

The Latvian photographer still doesn’t understand why he can’t hire a UK talent for $20. However, in my experience it’s much easier to talk sense into some clients, than to reason with certain colleagues (and I use the term colleagues loosely, because they’re acting anything but collegial). Most of my clients know how to run a for-profit business, but so many ‘colleagues’ seem to be clueless. They don’t know the difference between “selling,” and “selling out.”

Every time the issue of reasonable rates comes up, there are always voices saying:

“Who are you to tell me what I should charge? It’s a free country, and I can charge whatever I want!”

Yes, and I can sell my Subaru Outback any time for $300, but does that make any sense whatsoever? Why should I settle for a handout if the market value of my car is at least $3,000? How stupid do I have to be to practically give my car away to the lowest bidder?

By the way, this whole free country argument is a load of bull, used by imbeciles to defend all kinds of idiotic practices. Here’s the thing:

Just because you can, doesn’t mean you must, or that it’s wise. 

“But who cares if I sell my voice for five bucks? Mind your own business! I’m not telling you what to charge. My bottom line doesn’t affect yours.”

Is that really so? What would happen if half of all car owners would decide to sell their vehicles way below value? Tell me that has zero impact on the used car market!

If what’s happening at the bottom of the VO-market does not affect the rest, why aren’t voice-over fees at least keeping up with the rate of inflation? Why are rates across the board in a steady decline?

WE NEED EACH OTHER

In the grand scheme of things you may feel insignificant, and believe that your choices only influence your bottom line. But hundreds of these individual choices send a message, and thousands create a trend clever clients have picked up on. 

To put it differently: if you really believe that one, individual decision has no impact on the overall outcome, then there’s no reason to live in a democracy. You might as well move to North-Korea. But since you’re still here, and (I hope) you vote, you must believe that you can make a difference.

Your choice of what to charge makes a difference. It impacts our professional community, and the families that depend on it. 

You can either cheapen our profession and our community, or enrich it. You can build it up, or tear it down.

You can price like a predator, or like a professional. 

Or are you afraid to charge a decent rate? Are you afraid the client will reject you?

Are you not convinced that what you have to offer can command a fair price?

If that’s the case, here’s a suggestion: perhaps you should find another job.

A certain Pay to Play call center in Canada might be hiring very soon.

Paul Strikwerda ©nethervoice

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PPS Below you’ll find links to some of the other articles I’ve written about rates and pricing

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The Lowdown on Lowballing

by Paul Strikwerda in Articles, Career, Freelancing, International, Money Matters 70 Comments

You’ve probably heard the story of the priest who preached the same sermon every Sunday.

After a few weeks, some of the parishioners got tired of it and demanded an explanation.

“Do you really want to know why I’m repeating myself at every service?” asked the priest. The crowd nodded.

“I will continue to tell you the same thing over and over again, until you take it to heart and do something with it.

If you don’t change your behavior, I don’t see any reason for me to change my sermon.”

Well, I may be the son of a minister, but as a writer, I can certainly relate to this priest. When it comes to setting rates, I sometimes feel I’m talking to a sea of people with frighteningly short memories and no backbone.

Watch me as I go to my pulpit and address the crowd:

Read the rest of this story in my new book. Click here for the paperback version, and click here for a Kindle download.

Click on the cover to access the website and get a sneak peek.

Making Money In Your PJs cover

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